Oxnard Municipal Code Art. I A. Oxnard Tourism Marketing District

Pursuant to the provisions of the Property and Business Improvement District Law of 1994 (Cal. Streets and Highways Code Section 36600 et seq.), the Oxnard Tourism Marketing District (OTMD) is hereby renewed effective April 1, 2024 or as soon as possible thereafter, and shall end on June 30, 2033.

(Ord. No. 3030)

The Management District Plan (Plan) for the OTMD dated June 8, 2023 is hereby adopted and approved.

(Ord. No. 3030)

(A) The activities to be provided to benefit businesses in the OTMD shall be funded by the levy of assessments. The revenue from the assessment levy shall not be used to provide activities or improvements outside the OTMD unless the activities or improvements are marketing or signage pointing to the OTMD; or for any purpose other than the purposes specified in Ord. No. 3030, the Resolution of Intention, the Resolution of Formation, and the Plan.

(B) The Council finds as follows:

(1) The activities funded by the assessment will provide a specific benefit to assessed lodging businesses within the OTMD that is not provided to those not paying the assessment.

(2) The assessment is a charge imposed for a specific benefit conferred or privilege granted directly to the payor that is not provided to those not charged, and which does not exceed the reasonable costs to the local government of conferring the benefit or granting the privilege.

(3) The assessment is a charge imposed for a specific government service or product provided directly to the payor that is not provided to those not charged, and which does not exceed the reasonable costs to the local government of providing the service or product.

(4) Assessments imposed pursuant to the OTMD are levied solely upon the assessed lodging business, and the lodging business owner is solely responsible for payment of the assessment when due. If the owner chooses to collect any portion of the assessment from a transient or customer, that portion shall be specifically called out and identified for the transient or customer in any and all communications from the business owner as the "OTMD Assessment" or the "Tourism Assessment" as specified in the Plan.

(C) The assessments levied for the OTMD shall be applied toward sales and marketing programs, and other improvements and activities as set forth in the Plan.

(D) Assessments levied on certain lodging businesses within the OTMD pursuant to this article shall be levied on the basis of benefit. Because the services provided are intended to increase room rentals, an assessment based on gross short term room rental revenue is the best measure of benefit.

(Ord. No. 3030)

The assessments for the OTMD will total approximately $1,000,000 for each full fiscal year (July 1 - June 30) of operations. The initial year of operations will be a partial year consisting of 3 months, with an anticipated assessment budget of $250,000.

(Ord. No. 3030)

Bonds shall not be issued to fund the OTMD.

(Ord. No. 3030)

The renewed OTMD includes all lodging businesses with 55 rooms or more located within the boundaries of the city as described in the Management District Plan.

(Ord. No. 3030)

(A) The annual assessment rate of the OTMD is 2.0% of gross short-term sleeping room rental revenue. Based on the benefit received, assessments will not be collected on: stays of more than 30 consecutive days; stays by an employee or officer of the United States government or an employee or officer of the state government that executes, under penalty of perjury, a form claiming such exemption; and stays by any person who is required to obtain a shelter in a lodging business by reason of circumstances such as fire, flood, or other disaster which makes that person's usual residence uninhabitable and proves that their residence is in an area that has been officially declared a disaster area by local, state, or federal authorities.

(B) The assessments shall be used for the purposes set forth herein and any funds remaining at the end of any year may be used in subsequent years in which the OTMD assessment is levied as long as they are used consistent with the requirements set forth herein.

(Ord. No. 3030)

The city will be responsible for collecting the assessment on a monthly basis (including any delinquencies, penalties and interest) from each lodging business located in the boundaries of the OTMD. The city shall take all reasonable efforts to collect the assessments from each assessed lodging business.

(Ord. No. 3030)

Through adoption of this article and the Plan, the Council has the right pursuant to Cal. Streets and Highways Code Section 36651 to identify the body that shall implement the proposed program. As defined in Cal. Streets and Highways Code Section 36612, the Council hereby designates the Owners' Association of the OTMD as that body. The Oxnard Convention & Visitors Bureau dba Visit Oxnard (VO) shall continue to be the OTMD Owners' Association. The Council is authorized to contract with VO to administer the OTMD.

(Ord. No. 3030)

Pursuant to Cal. Streets and Highways Code Section 36650, VO shall cause to be prepared a report for each fiscal year, except the first year, for which assessments are to be levied and collected to pay the costs of the improvement and activities described in the report. The first report shall be due after the first year of operation of the OTMD.

(Ord. No. 3030)

The renewed OTMD shall be subject to any amendments to the Property and Business Improvement District Law of 1994 (Cal. Streets and Highways Code Section 36600 et seq.).

(Ord. No. 3030)